II
110th CONGRESS
2d Session
S. 2886
IN THE SENATE OF THE UNITED STATES
April 17, 2008
Mr. Baucus (for himself, Mr. Grassley, Mr. Salazar, Mr. Schumer, Ms. Stabenow, Mr. Smith, Mr. Crapo, Mr. Rockefeller, Mr. Kyl, and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to amend certain expiring provisions.
Short title; amendment of 1986 Code; table of contents
Short title
This Act may be cited as the Alternative Minimum Tax and Extenders Tax Relief Act of
2008
.
Amendment of 1986 Code
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I—Alternative minimum tax relief
Sec. 101. Extension of alternative minimum tax relief for nonrefundable personal credits.
Sec. 102. Extension of increased alternative minimum tax exemption amount.
TITLE II—Individual tax provisions
Sec. 201. Election to include combat pay as earned income for purposes of the earned income credit.
Sec. 202. Distributions from retirement plans to individuals called to active duty.
Sec. 203. Deduction for State and local sales taxes.
Sec. 204. Deduction of qualified tuition and related expenses.
Sec. 205. Deduction for certain expenses of elementary and secondary school teachers.
Sec. 206. Modification of mortgage revenue bonds for veterans.
Sec. 207. Tax-free distributions from individual retirement plans for charitable purposes.
Sec. 208. Treatment of certain dividends of regulated investment companies.
Sec. 209. Stock in RIC for purposes of determining estates of nonresidents not citizens.
Sec. 210. Qualified investment entities.
Sec. 211. Qualified conservation contributions.
TITLE III—Business tax provisions
Sec. 301. Extension and modification of research credit.
Sec. 302. New markets tax credit.
Sec. 303. Subpart
F exception for active financing income.Sec. 304. Extension of look-thru rule for related controlled foreign corporations.
Sec. 305. Extension of 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements.
Sec. 306. Enhanced charitable deduction for contributions of food inventory.
Sec. 307. Extension of enhanced charitable deduction for contributions of book inventory.
Sec. 308. Modification of tax treatment of certain payments to controlling exempt organizations.
Sec. 309. Basis adjustment to stock of S corporations making charitable contributions of property.
Sec. 310. Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands.
Sec. 311. Parity in the application of certain limits to mental health benefits.
Sec. 312. Extension of economic development credit for American Samoa.
Sec. 313. Extension of mine rescue team training credit.
Sec. 314. Extension of election to expense advanced mine safety equipment.
Sec. 315. Extension of expensing rules for qualified film and television productions.
Sec. 316. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.
Sec. 317. Extension of qualified zone academy bonds.
Sec. 318. Indian employment credit.
Sec. 319. Accelerated depreciation for business property on Indian reservation.
Sec. 320. Railroad track maintenance.
Sec. 321. Seven-year cost recovery period for motorsports racing track facility.
Sec. 322. Expensing of environmental remediation costs.
Sec. 323. Extension of work opportunity tax credit for Hurricane Katrina employees.
TITLE IV—Extensions of energy provisions
Sec. 401. Extension of credit for energy efficient appliances.
Sec. 402. Extension of credit for nonbusiness energy property.
Sec. 403. Extension of credit for residential energy efficient property.
Sec. 404. Extension of renewable electricity, refined coal, and Indian coal production credit.
Sec. 405. Extension of new energy efficient home credit.
Sec. 406. Extension of energy credit.
Sec. 407. Extension and modification of credit for clean renewable energy bonds.
Sec. 408. Extension of energy efficient commercial buildings deduction.
TITLE V—Tax administration
Sec. 501. Permanent authority for undercover operations.
Sec. 502. Permanent disclosures of certain tax return information.
Sec. 503. Disclosure of information relating to terrorist activities.
Alternative minimum tax relief
Extension of alternative minimum tax relief for nonrefundable personal credits
In general
Paragraph (2) of section 26(a) (relating to special rule for taxable years 2000 through 2007) is amended—
by striking
or 2007
and inserting 2007, or 2008
, and
by striking
2007
in the heading thereof and inserting
2008
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
Extension of increased alternative minimum tax exemption amount
In general
Paragraph (1) of section 55(d) (relating to exemption amount) is amended—
by striking
($66,250 in the case of taxable years beginning in 2007)
in
subparagraph (A) and inserting ($69,950 in the case of taxable years
beginning in 2008)
, and
by striking
($44,350 in the case of taxable years beginning in 2007)
in
subparagraph (B) and inserting ($46,200 in the case of taxable years
beginning in 2008)
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
Individual tax provisions
Election to include combat pay as earned income for purposes of the earned income credit
In general
Subclause (II) of section 32(c)(2)(B)(vi) (defining
earned income) is amended by striking January 1, 2008
and
inserting January 1, 2010
.
Conforming amendment
Paragraph (4) of section 6428, as amended by the Economic Stimulus Act of 2008, is amended to read as follows:
Earned income
The term earned income
has the meaning set
forth in section 32(c)(2) except that such term shall not include net earnings
from self-employment which are not taken into account in computing taxable
income.
.
Effective date
The amendments made by this section shall apply to taxable years ending after December 31, 2007.
Distributions from retirement plans to individuals called to active duty
In General
Clause (iv) of section 72(t)(2)(G) is amended by striking
December 31, 2007
and inserting January 1,
2010
.
Effective Date
The amendment made by this section shall apply to individuals ordered or called to active duty on or after December 31, 2007.
Deduction for State and local sales taxes
In general
Subparagraph (I) of section 164(b)(5) is amended by
striking January 1, 2008
and inserting January 1,
2010
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
Deduction of qualified tuition and related expenses
In general
Subsection (e) of section 222 (relating to termination)
is amended by striking December 31, 2007
and inserting
December 31, 2009
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
Deduction for certain expenses of elementary and secondary school teachers
In general
Subparagraph (D) of
section 62(a)(2) (relating to certain expenses of elementary and secondary
school teachers) is amended by striking or 2007
and inserting
2007, 2008, or 2009
.
Effective date
The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2007.
Modification of mortgage revenue bonds for veterans
Qualified Mortgage Bonds Used To Finance Residences for Veterans Without Regard to First-Time Homebuyer Requirement
Subparagraph (D) of section
143(d)(2) (relating to exceptions) is amended by inserting and after the
date of the enactment of the Alternative
Minimum Tax and Extenders Tax Relief Act of 2008 and before
January 1, 2010
after January 1, 2008
.
Effective Date
The amendment made by this section shall apply to bonds issued after the date of the enactment of this Act.
Tax-free distributions from individual retirement plans for charitable purposes
In general
Subparagraph (F) of section 408(d)(8) (relating to
termination) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Effective date
The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2007.
Treatment of certain dividends of regulated investment companies
Interest-related dividends
Subparagraph (C) of section 871(k)(1) (defining
interest-related dividend) is amended by striking December 31,
2007
and inserting December 31, 2009
.
Short-term capital gain dividends
Subparagraph (C) of section 871(k)(2)
(defining short-term capital gain dividend) is amended by striking
December 31, 2007
and inserting December 31,
2009
.
Effective date
The amendments made by this section shall apply to dividends with respect to taxable years of regulated investment companies beginning after December 31, 2007.
Stock in RIC for purposes of determining estates of nonresidents not citizens
In general
Paragraph (3) of
section 2105(d) (relating to stock in a RIC) is amended by striking
December 31, 2007
and inserting December 31,
2009
.
Effective date
The amendment made by this section shall apply to decedents dying after December 31, 2007.
Qualified investment entities
In general
Clause (ii) of
section 897(h)(4)(A) (relating to termination) is amended by striking
December 31, 2007
and inserting December 31,
2009
.
Effective date
The amendment made by subsection (a) shall take effect on January 1, 2008.
Qualified conservation contributions
In general
Clause (vi) of section 170(b)(1)(E) (relating to
termination) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Contributions by corporate farmers and ranchers
Clause (iii) of section
170(b)(2)(B) (relating to termination) is amended by striking December
31, 2007
and inserting December 31, 2009
.
Effective date
The amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.
Business tax provisions
Extension and modification of research credit
Extension
Section 41(h) (relating to termination) is amended—
by striking
December 31, 2007
and inserting December 31, 2009
in paragraph (1)(B),
by redesignating paragraph (2) as paragraph (3), and
by inserting after paragraph (1) the following new paragraph:
Termination of alternative incremental credit
No election under subsection (c)(4) shall apply to amounts paid or incurred after December 31, 2007.
.
Modification of alternative simplified credit
Paragraph (5)(A) of section 41(c) (relating to election of alternative simplified credit) is amended to read as follows:
In general
Calculation of credit
At the election of the taxpayer, the credit determined under subsection (a)(1) shall be equal to the applicable percentage (as defined in clause (ii)) of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined.
Applicable percentage
For purposes of the calculation under clause (i), the applicable percentage is—
14 percent, in the case of taxable years ending before January 1, 2009, and
16 percent, in the case of taxable years beginning after December 31, 2008.
.
Conforming amendment
Subparagraph (D) of section 45C(b)(1) (relating to
special rule) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Effective date
The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007.
New markets tax credit
Subparagraph (D) of
section 45D(f)(1) (relating to national limitation on amount of investments
designated) is amended by striking and 2008
and inserting
2008, and 2009
.
Subpart F exception for active financing income
Exempt insurance income
Paragraph (10) of section 953(e) (relating to application) is amended—
by striking
January 1, 2009
and inserting January 1, 2010
,
and
by striking
December 31, 2008
and inserting December 31,
2009
.
Exception to treatment as foreign personal holding company income
Paragraph
(9) of section 954(h) (relating to application) is amended by striking
January 1, 2009
and inserting January 1,
2010
.
Extension of look-thru rule for related controlled foreign corporations
In general
Subparagraph (B) of section 954(c)(6) (relating to
application) is amended by striking January 1, 2009
and
inserting January 1, 2010
.
Effective date
The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2007, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
Extension of 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant improvements
In general
Clauses (iv) and (v) of section 168(e)(3)(E) (relating to
15-year property) are each amended by striking January 1, 2008
and inserting January 1, 2010
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2007.
Enhanced charitable deduction for contributions of food inventory
In general
Clause (iv) of section 170(e)(3)(C) (relating to
termination) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Effective date
The amendment made by this section shall apply to contributions made after December 31, 2007.
Extension of enhanced charitable deduction for contributions of book inventory
Extension
Clause
(iv) of section 170(e)(3)(D) (relating to termination) is amended by striking
December 31, 2007
and inserting December 31,
2009
.
Clerical amendment
Clause (iii) of section 170(e)(3)(D) (relating to
certification by donee) is amended by inserting of books
after
to any contribution
.
Effective date
The amendments made by this section shall apply to contributions made after December 31, 2007.
Modification of tax treatment of certain payments to controlling exempt organizations
In general
Clause (iv) of section 512(b)(13)(E) (relating to
termination) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Effective date
The amendment made by this section shall apply to payments received or accrued after December 31, 2007.
Basis adjustment to stock of S corporations making charitable contributions of property
In general
The last sentence of section 1367(a)(2) (relating to
decreases in basis) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Effective date
The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.
Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands
In general
Paragraph (1) of section 7652(f) is amended by striking
January 1, 2008
and inserting January 1,
2010
.
Effective date
The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2007.
Parity in the application of certain limits to mental health benefits
In general
Subsection (f) of section 9812 (relating to application of section) is amended—
by striking
and
at the end of paragraph (2),
by striking the
period at the end of paragraph (3) and inserting , and before the date
of the enactment of the Alternative Minimum
Tax and Extenders Tax Relief Act of 2008, and
, and
by adding at the end the following new paragraph:
after December 31, 2009.
.
Amendment to the Employee Retirement Income Security Act of 1974
Section
712(f) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1185a(f)) is amended by inserting , and before the date of the enactment
of the Alternative Minimum Tax and Extenders
Tax Relief Act of 2008, and after December 31, 2009
after
December 31, 2007
.
Amendment to the Public Health Service Act
Section 2705(f) of the Public
Health Service Act (42 U.S.C. 300gg–5(f)) is amended by inserting , and
before the date of the enactment of the Alternative Minimum Tax and Extenders Tax Relief Act of
2008, and after December 31, 2009
after December
31, 2007
.
Effective date
The amendments made by this section shall apply to benefits for services furnished on or after the date of the enactment of this Act.
Extension of economic development credit for American Samoa
In general
Subsection (d) of section 119 of division A of the Tax Relief and Health Care Act of 2006 is amended—
by
striking first two taxable years
and inserting first 4
taxable years
, and
by striking
January 1, 2008
and inserting January 1,
2010
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
Extension of mine rescue team training credit
Section 45N(e) (relating to termination) is
amended by striking December 31, 2008
and inserting
December 31, 2009
.
Extension of election to expense advanced mine safety equipment
Section
179E(g) (relating to termination) is amended by striking December 31,
2008
and inserting December 31, 2009
.
Extension of expensing rules for qualified film and television productions
Section 181(f) (relating to termination) is
amended by striking December 31, 2008
and inserting
December 31, 2009
.
Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico
In general
Subparagraph (C) of section 199(d)(8) (relating to termination) is amended—
by striking
first 2 taxable years
and inserting first 4 taxable
years
, and
by striking
January 1, 2008
and inserting January 1,
2010
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
Extension of qualified zone academy bonds
In general
Paragraph (1) of section 1397E(e) is amended by striking
and 2007
and inserting 2007, 2008, and
2009
.
Effective date
The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.
Indian employment credit
In general
Subsection (f) of section 45A (relating to termination)
is amended by striking December 31, 2007
and inserting
December 31, 2009
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
Accelerated depreciation for business property on Indian reservation
In general
Paragraph (8) of section 168(j) (relating to termination)
is amended by striking December 31, 2007
and inserting
December 31, 2009
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2007.
Railroad track maintenance
In general
Subsection (f) of section 45G (relating to application of
section) is amended by striking January 1, 2008
and inserting
January 1, 2010
.
Effective date
The amendment made by this section shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2007.
Seven-year cost recovery period for motorsports racing track facility
In general
Subparagraph (D) of section 168(i)(15) (relating to termination) is amended to read as follows:
Application of paragraph
Such term shall apply to property placed in service after the date of the enactment of the Alternative Minimum Tax and Extenders Tax Relief Act of 2008 and before January 1, 2010.
.
Effective date
The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.
Expensing of environmental remediation costs
In general
Subsection (h) of section 198 (relating to termination)
is amended by striking December 31, 2007
and inserting
December 31, 2009
.
Effective date
The amendment made by this section shall apply to expenditures paid or incurred after December 31, 2007.
Extension of work opportunity tax credit for Hurricane Katrina employees
In general
Paragraph (1) of
section 201(b) of the Katrina Emergency Tax Relief Act of 2005 is amended by
striking 2-year
and inserting 4-year
.
Effective date
The amendment made by subsection (a) shall apply to individuals hired after August 27, 2007.
Extensions of energy provisions
Extension of credit for energy efficient appliances
In general
Subsection (b) of section 45M (relating to applicable
amount) is amended by striking calendar year 2006 or 2007
each
place it appears in paragraphs (1)(A)(i), (1)(B)(i), (1)(C)(ii)(I), and
(1)(C)(iii)(I), and inserting calendar year 2006, 2007, 2008, or
2009
.
Restart of credit limitation
Paragraph (1) of section 45M(e) (relating to
aggregate credit amount allowed) is amended by inserting beginning after
December 31, 2007
after for all prior taxable
years
.
Effective date
The amendments made by this section shall apply to appliances produced after December 31, 2007.
Extension of credit for nonbusiness energy property
In general
Section 25C(g)
(relating to termination) is amended by striking December 31,
2007
and inserting December 31, 2009
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2007.
Extension of credit for residential energy efficient property
Section 25D(g) (relating to termination) is
amended by striking December 31, 2008
and inserting
December 31, 2009
.
Extension of renewable electricity, refined coal, and Indian coal production credit
Section 45(d) (relating
to qualified facilities) is amended by striking January 1, 2009
each place it appears in paragraphs (1), (2), (3), (4), (5), (6), (7), (8),
(9), and (10) and inserting January 1, 2010
.
Extension of new energy efficient home credit
Subsection (g) of
section 45L (relating to termination) is amended by striking December
31, 2008
and inserting December 31, 2009
.
Extension of energy credit
Solar energy property
Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
(relating to energy credit) are each amended by striking January 1,
2009
and inserting January 1, 2010
.
Fuel cell property
Subparagraph (E) of section 48(c)(1) (relating to
qualified fuel cell property) is amended by striking December 31,
2008
and inserting December 31, 2009
.
Microturbine property
Subparagraph (E) of section 48(c)(2) (relating to
qualified microturbine property) is amended by striking December 31,
2008
and inserting December 31, 2009
.
Extension and modification of credit for clean renewable energy bonds
Extension
Section
54(m) (relating to termination) is amended by striking December 31,
2008
and inserting December 31, 2009
.
Increase in national limitation
Section 54(f) (relating to limitation on amount of bonds designated) is amended—
by striking
$1,200,000,000
in paragraph (1) and inserting
$1,600,000,000
, and
by striking
$750,000,000
in paragraph (2) and inserting
$1,000,000,000
.
Modification of ratable principal amortization requirement
In general
Paragraph (5) of section 54(l) is amended to read as follows:
Ratable principal amortization required
A bond shall not be treated as a clean renewable energy bond unless it is part of an issue which provides for an equal amount of principal to be paid by the qualified issuer during each 12-month period that the issue is outstanding (other than the first 12-month period).
.
Technical amendment
The third sentence of section 54(e)(2) is amended by
striking subsection (l)(6)
and inserting subsection
(l)(5)
.
Effective date
The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
Extension of energy efficient commercial buildings deduction
Section 179D(h) (relating to termination) is
amended by striking December 31, 2008
and inserting
December 31, 2009
.
Tax administration
Permanent authority for undercover operations
In general
Section 7608(c) (relating to rules relating to undercover operations) is amended by striking paragraph (6).
Effective date
The amendment made by this section shall apply to operations conducted after the date of the enactment of this Act.
Permanent disclosures of certain tax return information
Disclosures To facilitate combined employment tax reporting
In general
Section 6103(d)(5) (relating to disclosure for combined employment tax reporting) is amended—
by striking
reporting
in the heading thereof and all
that follows through The Secretary
in subparagraph (A) and
inserting reporting.—The Secretary
, and
by striking subparagraph (B).
Effective date
The amendments made by this subsection shall apply to disclosures after the date of the enactment of this Act.
Disclosures relating to certain programs administered by the Department of Veterans Affairs
In general
Section 6103(l)(7)(D) (relating to programs to which rule applies) is amended by striking the last sentence.
Technical amendment
Section 6103(l)(7)(D)(viii)(III) is amended by striking
sections 1710(a)(1)(I), 1710(a)(2), 1710(b), and 1712(a)(2)(B)
and inserting sections 1710(a)(2)(G), 1710(a)(3), and
1710(b)
.
Disclosure of information relating to terrorist activities
Disclosure of return information to apprise appropriate officials of terrorist activities
Clause (iv) of section 6103(i)(3)(C) (relating to
termination) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Disclosure upon request of information relating to terrorist activities
Subparagraph (E) of section 6103(i)(7) (relating to
termination) is amended by striking December 31, 2007
and
inserting December 31, 2009
.
Effective date
The amendments made by this section shall apply to disclosures after the date of the enactment of this Act.